What does the term 'escheat' refer to in the context of property law?

The term 'escheat' in the context of property law specifically refers to the process by which a decedent's property is transferred to the state when there are no legal heirs to inherit it. This mechanism is designed to ensure that property does not remain unclaimed or abandoned. When a person dies without a will and without any surviving relatives, the state steps in to take ownership of the deceased person’s property. This reflects the principle that property should ultimately belong to the government if there are no individuals entitled to inherit it.

In contrast, the other options represent different aspects of property law that do not align with the specific definition of escheat. The transfer of property to heirs speaks to the traditional inheritance process, while legal distribution of an estate typically involves executing a will or following specific legal guidelines to allocate assets among identified beneficiaries. Management of trust funds relates to the administration of funds held in trust on behalf of beneficiaries, again diverging from the concept of escheat. Each of these alternatives involves established heirs or designated parties, whereas escheat is specifically about property reverting to state control due to a lack of rightful claimants.